ArcelorMittal is exploring a joint offer with Resurgent Power Ventures Pte to buy an Essar Power generation plant in India, according to people with knowledge of the matter.
The companies have held preliminary talks on a potential joint bid for the 1,200-megawatt power plant in the central Indian state of Madhya Pradesh, said the people, asking not to be identified because the information is private. Arcelor had previously made a non-binding offer of 48 billion rupees ($690 million) for the asset, Bloomberg News reported in February.
Adding Resurgent Power to the bid would help Arcelor, the world’s largest steel producer, gain control of the power plant without putting as much strain on its balance sheet.
Tata Power Co. owns 26% of Resurgent Power, while ICICI Bank Ltd. and the sovereign wealth funds of Oman and Kuwait hold the rest, according to a January statement. Read More